Tag Archives: Peter Lee

Gateway to New Frontiers

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By Peter Lee

Steven, a Malaysian businessman, owns a successful business selling a wide range of electronic products to the local market over the past 20 years. He normally purchases his goods from various suppliers in China. Recently, he did a survey on the demand for some of his products in Singapore. As a result of this survey, he had meetings with some potential customers, who in turn, expressed an interest in purchasing from him. This prompted him to consider incorporating a private limited company in Singapore to conduct his business there. Furthermore, with globalization and rapid changes in the world economy, he believes that his business can get a strong foothold in the International market.

In doing so, he would have the advantages of getting a foothold into a new market and a gateway to the regional markets plus a lower taxation for his trading profits there.

To incorporate a Company in Singapore, you must have at least one local resident director who is above 18 years old. There must be at least one shareholder who can be a local or a foreign person. A foreign person or business entity can own 100% of a Singapore company. The director and shareholder can be the same person. The company must be registered in Singapore. It has to file the company’s accounts with Accounting and Corporate Regulatory Authority of Singapore annually. If it qualifies to be an exempt private company and has an annual turnover of less than S$5 million, then the company can file in the unaudited accounts whereas other companies are required to file in the audited accounts. An exempt private company in Singapore is defined under Section 4(1) of the Singapore Companies Act as a company which has not more than 20 shareholders and its shares are not held by another corporate entity.

When it comes to corporate tax at the moment, all Singapore resident companies are eligible for a tax exemption amounting to a 0% to 8.5% tax rate on taxable income of up to S$300,000 per annum. The taxable income above S$300,000 will be charged at the normal headline of corporate tax of 17%.

With business interests in Malaysia and Singapore, it is advisable for Steven to prepare one will covering assets in Malaysia and another will covering assets in Singapore. This is to facilitate easy and faster application for Grant of Probate in each of the respective countries. At the same time, it is also important to consider setting up a private trust for immediate funding in each of the countries because upon his demise many of his assets, especially his cash, may be frozen and immediate liquidity for his business can be a major problem. Therefore, he must consider setting up an insurance trust because it is considered one of the cheapest funding vehicle. All he needs to do is to execute an absolute assignment in some of his insurance policies into a trust and upon his demise the money from his insurance will flow into the trust for immediate usage.

Peter Lee is an Associate Estate Planning Practitioner (Wills & Trust) with Rockwills International Group. He is also an Islamic Estate Planner providing Wills & Trust services for Muslims. He is based in Ipoh and can be reached at: 012-5078825/ 05-2554853 or excelsec@streamyx.com. Website: http://www.wills-trust.com.my.

Beyond Borders

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By Peter Lee

Ten years ago, Jim, a Malaysian, purchased an apartment in central London for £500,000 because his two children were studying there. During that time he was advised to write a will in U.K. because it would be more expedient to have a U.K. will covering the assets there. His U.K. will specifies that he will give his property and money in his London bank accounts to his wife solely upon his demise. However, if common disaster occurs where his wife also passes away then these assets will be given to his two children equally who are now in their early thirties. Similarly, he had also written a will in Malaysia covering assets in Malaysia. The Executors/Trustees for both the wills are his wife first, followed by his children. One year ago, he passed away and his wife applied for the Grant of Probate in Malaysia and in the UK using the wills from the respective countries. Upon obtaining the U.K. Probate, she discovered that she has to pay inheritance tax of 40% on anything above the threshold of £325,000 for the property and monies in the bank account in U.K. At that point of Jim’s death, the value of the property had appreciated to £800,000 and his bank account had a balance of £200,000 totalling one million. So, very simply calculated, Jim’s wife had to pay 40% tax on £675,000, which amounts to £270,000. In Malaysia, since estate duty has been abolished, his wife need not pay tax on the inheritance but she would have to settle Jim’s personal income tax if there are any outstanding tax amount from his estate.

One of the ways to overcome paying estate duty is to form an Offshore Company to hold the property and the bank account in London. With an Offshore Company, Jim could have avoided paying estate duties, inheritance tax and capital gains tax when he passed away. The property held in most offshore companies could be sold by just transferring its shares without paying any stamp duty. This kind of Company is usually incorporated in a tax haven jurisdiction like the British Virgin Islands (“BVI”), a British overseas protected territory in the Caribbean. There are more than 900,000 incorporations to date. To form an Offshore Company, you only need to have one Director and one Shareholder who could be an individual or a corporate entity. The details of Directors and shareholders are not on any public records so they provide high confidentiality in terms of ownership and control. They are not required to hold meetings but if they do, then it can be held anywhere in the world. The Directors may grant special and general powers of attorney to any person to manage the company’s assets. The name of the company can also be in Chinese. There is no authorized capital required. Bearer shares are allowed but it must be held by an approved custodian. Lastly, there is no requirement to file in annual returns, audited accounts and tax returns. This makes the administration of the company relatively simple as compared to the requirements required for a Sdn Bhd. Hence, for ownership of foreign assets, it would be important to use an offshore company instead of owning it in the individual name for purposes of wealth succession and tax minimization.

Peter Lee is an Associate Estate Planning Practitioner (Wills & Trust) with Rockwills International Group. He is also an Islamic Estate Planner providing Wills & Trust services for Muslims. He is based in Ipoh and can be reached at: 012-5078825/ 05-2554853 or excelsec@streamyx.com. Website: http://www.wills-trust.com.my.

Why Why Tell Me Why?

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Peter Lee

Whenever I take my shower nowadays I normally sing “why why tell me why”, a song made famous by the late Cantopop diva, Anita Mui, because I am puzzled why so many people to whom I have spoken have not made a will and trust for their families. If you followed the legal tussle over Anita Mui’s estate recently, you would have noticed how important this is. Before her death, she wrote a will that gave away the bulk of her estate, estimated at HK $100 million, to “Karen Trust”.

In this trust, her mother receives HK$70,000 monthly for her living expenses. In addition, she set aside HK$400,000 for each of her brothers’ four children’s university expenses. Her properties were given to a retired designer. It was also stated that if her mother passed away, her estate would be donated to New Horizon Buddhist Association. The reason she did this was based on the fear that if she gave everything to her mother at one go, she would squander all of it with the help of her eldest brother. But her mother wanted full control of her daughter’s estate by taking a lawsuit against the administrators of the Trust Fund claiming that Anita was of unsound mind when signing the will. However, the Hong Kong Court of Final Appeal dismissed her lawsuit saying that Anita Mui was of sound mind when signing the will based on the testimony given by three witnesses. They were her principal doctor, Anita’s godmother of 20 years and a private trust director.

You may say that you don’t need a will and trust because you don’t have the type of wealth Anita Mui had. But you too can apply the same principles according to your family’s needs. For example, you can will away your entire estate to your beneficiaries but if you have minor or spendthrift children or parents, then it’s important that you specify how much they should be receiving for their monthly expenses which is termed as “Testamentary Trust”. In addition, it is equally important to have a “Living Trust” just like Anita’s example. However, in her case, the Trustee of her will must first obtain the Grant of Probate before her entire estate could be transferred to her “Living Trust” which in Malaysia, can take 1 to 1½ years. In most cases, families need immediate funding which you can do by assigning some of your assets to your “Living Trust” like an insurance policy because money from there will flow into your “Trust” immediately upon your demise or permanent disability.

Anita’s case also highlights the importance of having honest, reliable and credible witnesses. That’s the reason why you have to appoint a credible and experienced Trustee Company like Rockwills Trustee Bhd. to set up the “Trust” and to be the Trustee for both your will and trust. Then, you can rest assured that your beneficiaries can sing “why why tell me why” everyday and still cannot challenge your decision on distribution.

Peter Lee is an Associate Estate Planning Practitioner (Wills & Trust) with Rockwills International Group. He is also an Islamic Estate Planner providing Wills & Trust services for Muslims. He is based in Ipoh and can be reached at: 012-5078825/ 05-2554853 or excelsec@streamyx.com. Website: http://www.wills-trust.com.my

A Light at the End of the Tunnel

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By Peter Lee

One major concern for many wage-earners nowadays is the cost of living. The domino effect on daily necessities and services is felt when the price of fuel goes up. This badly affects the monthly budget of many motorists. Then there are the food prices which never seem to go downwards whether it is vegetables or poultry. Most wage earners drive to their office, eating out during the work day, paying for their parking, paying for their house rental or bank loan and spending on their children’s expenses. Many say that it’s very tough to even save RM200 per month with all these expenditures. The cost of living is always a hot topic among all of us especially now because it affects our daily lives and voicing our grievances over these issues is certainly valid. However, it won’t help us and our family if we don’t take action like earning some extra income for them by having an extra job or learning other skills to provide meaningful services to others.

One of the meaningful services which you can consider is the Estate Planning Services (Wills & Trust). This is a service that every family requires but until today there are still many families who do not have even a simple will because they are either unaware of the importance of it or it never crossed their minds. This is where you will fit in if you are in this service. The simple objective of this service is to spread the message on the benefits of Estate Planning for every family and at the same time earning some extra income for your family. Some of you may ask, “Where do I look for my prospects to spread this message?” The answer is, “the prospects are already in your hands.” For instance, our daily lives involve meeting our colleagues everyday in the office, having meals with them, catching up with friends over tea and what do we usually talk about? Usually, it’s about our work, families and casual talk. Here is where you can make a difference by sharing with them the importance of having a will. But you must set an example by making yours first.

For a start, to acquire some knowledge in Wills and Trust, you can first join an Estate Planning Company like Rockwills who are the pioneers in Estate Planning services for the past 15 years. The company has a team of full-time lawyers specialising in this field, who have trained many individuals to help families fulfil their wishes with a will. To complete the Estate Planning picture, the company also has a Trustee company like Rockwills Trustee Bhd. to provide Trustee services to families because it has the expertise, accountability, impartiality and perpetual existence. With this support, you can help many families in fulfilling their wishes and giving them peace of mind. In return you get the satisfaction of helping others and at the same time earning some extra income for your family. So don’t curse the darkness but instead take action because there is always a light at the end of the tunnel.

Peter Lee is an Associate Estate Planning Practitioner (Wills & Trust) with Rockwills International Group. He is also an Islamic Estate Planner providing Wills & Trust services for Muslims. He is based in Ipoh and can be reached at: 012-5078825/ 05-2554853 or excelsec@streamyx.com. Website: http://www.wills-trust.com.my.

A Bridge For The Union Of Two Worlds

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By Peter Lee

Not long ago I came across an article which carried a story of an 11-year-old in Sabah who killed himself because he could not stand the poverty he was living in. He was found hanged from the ceiling of his house. Apparently, he could not endure the cruel teasing at school by classmates who likened the porridge he brought from home daily to that of dog vomit. Nadarajah was once a carpenter in the city. He suffered a stroke in year 2004. As a result, he lost his ability to work and provide for his family. His entire family now risk losing their home because they could not afford rental. Mariam suffers from renal failure and her crippling medical cost for 12 dialysis treatments is RM540 per month. Her father is always away from home and she is desperate for help. Lingam was paralysed since age 19 from a fall. He is now living on Social Welfare with a monthly allowance of RM150. His family depends on food donations. These sad stories tell us that the world of poverty has no sympathy and it is happening around us right now and there are many similar cases across the country. Therefore, is there hope for them?

Their hopes will always depend on the philanthropic world. The encouraging news is that there are more and more wealthy individuals nowadays who are willing to donate substantial amounts of their wealth to eradicate poverty. Some of these whom I have known personally are doing these good deeds without any publicity. However, I am sure there are many more out there who want to do the same thing but are looking for the right people or organisation to handle their money and pass it to their intended recipients while they are alive and continue to do so after they pass away. Many charities are connected to foundations but one can consider setting up a Charitable Trust where the Trust is in your name. The advantage of this is you don’t require any approval from any authorities when it comes to setting it up because you will be the only authority approving this Trust. When setting up this Trust, you are called the “Settlor”. You get to choose your “Trustee”. In the case of continuity, then the choice of a “Trustee Company” like Rockwills Trustee Bhd is considered as most suitable because it provides expertise, impartiality and perpetuality. After you have chosen the Trustee, you can then choose your management committee whom you trust to provide sound advice to the Trustee on certain issues of donation if you are not around. Your management committee can have a minimum of 5 to a maximum of 7 members. However, if your instructions to the intended recipients are straight forward then you can leave it to the Trustee Company to execute your instructions. Then you must list down the choice of your recipients, the criteria of donation and the initial amount for funding. Finally, all this information must be stated in a legal document called the “Trust Deed” and this is the bridge for the union of two worlds to unlock the chain of poverty.

Peter Lee is an Associate Estate Planning Practitioner (Wills & Trust) with Rockwills International Group. He is also an Islamic Estate Planner providing Wills & Trust services for Muslims. He is based in Ipoh and can be reached at: 012-5078825/05-2554853 or excelsec@streamyx.com. Website: http://www.wills-trust.com.my.

Romance of the Three Wills

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By Peter Lee

Lim is a Malaysian businessman with businesses in Malaysia and Singapore which results in frequent travels there. Looking at his hectic life, some of his close friends have advised him to prepare a will for his wife and his three school-going children. This has been on his mind for some time but whenever he decided to do it, some other pressing business matters always took precedence. Then during one of his usual trips to Singapore, he met with a car accident. Fortunately for him, he survived but was badly injured. While recuperating he came to realise just how fragile life can be and how lucky he was to be alive. It then became urgent for him to make a will for his family. He then had to to decide how to distribute his movable and immovable assets like his bank accounts, listed shares, shares in his own Company, some properties, etc., in Malaysia as well as those in Singapore which he had accumulated over the years.

In his position, it is advisable for him to prepare two wills. One will should be drawn up mentioning only the assets in Malaysia and another one for assets in Singapore. He then has to appoint executors for the Malaysian and Singaporean wills. He could choose his family members such as his wife and relatives or a Trustee Company like Rockwills Trustee to be the Executors/Trustee. However, considering his assets which are in two countries and the size of his considerable estate, it is best he chooses Rockwills Trustee Bhd for the will covering Malaysian assets and Rockwills Trustee Limited which is based in Singapore for the will covering assets in Singapore. The next important appointment is the Guardian for his minor children if he and his wife pass away together. Their choice would depend very much on the relationship between the chosen Guardian and his children. Lastly, he must write down his wishes as to how to distribute to his wife and children. Since the children are still minor then it is important to set up a “Testamentary Trust” in the two wills specifying the payment for their monthly maintenance. In addition, he should also set up a “Living Trust” in both the countries to provide immediate funding for his estate. One may ask why he can’t write a will in Malaysia covering assets in Malaysia and Singapore. If he has only one Will in Malaysia, he must first apply for a Grant of Probate in Malaysia and with this probate he can then only proceed with applying for a resealing order from Singapore to unlock all his movable assets there which may not be unlockable because land laws covering property differ in different countries. The other factor in favour of a separate will covering assets in Singapore is that he only needs to apply for the Grant of Probate with the Singapore lower courts instead of a resealing order with the Singapore High courts which is more costly.

While writing the two wills, it is of great importance for Lim to have a third will which is the will power to complete the two wills. Will power is like the romance that sustains and completes a relationship and this relationship is likened to the two wills.

Peter Lee is an Associate Estate Planning Practitioner (Wills & Trust) with Rockwills International Group. He is also an Islamic Estate Planner providing Wills & Trust services for Muslims. He is based in Ipoh and can be reached at: 012-5078825/05-2554853 or excelsec@streamyx.com. Website: http://www.wills-trust.com.my.

I Just Met My Executor In Heaven! So How Now?

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By Peter Lee

Tan is a widower with three children aged 8, 10 and 12. Not long after his wife’s death, he was diagnosed with terminal cancer. The children have been under his care with the help of his mother and sister. Anticipating the worst, he quickly made his will for the welfare of his minor children. In his will, he appointed his sister, Jocelyn to be the first Executor/Trustee and brother, Jason to be the substitute. Subsequently, he also chose Jocelyn to be  the guardian of his minor children due to the fact that her own children and husband are quite close to his children. The instructions in his will was to have his estate distributed equally to his three children. The Executor/Trustee is instructed to hold on to the estate and use it for his children’s living, medical and education expenses. Thereafter, to release the balance of the estate to them when his youngest child attains the age of 23.

Several months after doing his will, he died. So, Jocelyn, being the Executor/Trustee of the estate, applied for the Grant of Probate. When the probate was obtained, she collected all the movable and immovable assets. Subsequently, she started using the funds in the estate to take care of Tan’s children. After six months into her role as the Executor/Trustee, she was killed in a fatal accident and all of Tan’s assets, which are now under her name, are frozen. When this happened, I think Tan is going to say “I just met my Executor in heaven! So how now?” To unlock Tan’s assets, the Executor/Trustee of Jocelyn’s estate must first apply for the Grant of Probate for her estate. Presuming that her husband is the Executor/Trustee, it is his responsibility to execute his wife’s estate as well as Tan’s estate because Jason,
who is the substitute Executor/Trustee, cannot automatically take over the responsibility from his deceased sister.

In order to take over, Jocelyn’s husband must resign as Executor/Trustee of Tan’s estate and allow the beneficiaries of Tan’s estate to appoint Jason to replace him. Since Tan’s children are still minors, their
guardian must appoint the Executor/Trustee. Thereafter, Jason must apply for “Letters of Administration with the will annexed” to assume the role as Administrator of Tan’s estate. This would definitely delay the process of unlocking Tan’s estate and while awaiting for the “Letters of Administration with the will annexed”, Jocelyn’s husband would most likely have to take care of Tan’s children financially for the time being.  It can take years before Jason can take over from Jocelyn to administer the estate of Tan. In this situation, just imagine the financial hardship Tan’s children and Jocelyn’s husband will have to go through.

It is not easy for a family to deal with an estate of this kind knowing the fact that most would be lost in normal estate administration. One may argue that it doesn’t happen to every family which I agree. But taking Tan’s case as an example, would it not be more secure to appoint a Trustee Company like Rockwills Trustee Bhd. to be your estate’s main Trustee because at least it has perpetual existence. In addition, it provides expertise, impartiality and professionalism.

Peter Lee is an Associate Estate Planning Practitioner (Wills & Trust) with Rockwills International Group. He is also an Islamic Estate Planner providing Wills & Trust services for Muslims. He is based in Ipoh and can be reached at: 012-5078825/05-2554853 or excelsec@streamyx.com. Website: http://www.wills-trust.com.my.

Jom! Let’s Do a ‘Wasiat’

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By Peter Lee

Jalil passed away without a ‘Wasiat’ or Muslim Will 5 years ago. He leaves behind his wife, two sons and two daughters who are in their thirties. When he died, his estate, which included money in a bank account, unit trusts, share investments in Bursa Malaysia, company shares and properties, was worth RM6 million. Just before his death, he informed his wife and children, except for one son who was away overseas, that it was his intention to distribute his entire estate to the wife and children equally. Unfortunately, when he died the son who was away, disputed the distribution no matter how the rest of the family members explained to him his father’s wishes. He subsequently laid claim to his entitlement by filing to the Syariah court employing the faraid provision. Faraid is Islamic law of estate distribution according to Al-Quran and Sunnah of Prophet Muhammad S.A.W. Therefore, in Jalil’s case according to faraid distribution, his wife’s entitlement will be 1/8 and the balance will go to the two sons and two daughters in the ratio of 2:1. Before the distribution commences, the family must first apply for the Letter of Administration (LA) and then to the Syariah court for the faraid certificate. However, when the family applied for LA, the son who filed for faraid provision wanted to be administrator but was rejected by other family members and that’s when the application could not begin because the appointment of administrator/s must have consent of all the beneficiaries. Presuming that this appointment is settled, the family must further appoint two guarantors who have a gross value equivalent to the value of the estate.

If Jalil was alive, he could have prevented his estate from such a problem with his ‘Wasiat’. By doing a ‘Wasiat’, he could first appoint at least two executors of his choice or a corporate trustee like as-Salihin Trustee Bhd. to execute his estate. If he was worried that his family members are not capable of carrying out this responsibility, then it is better for him to appoint as-Salihin Trustee Bhd. as the sole Executor/Trustee because it provides expertise, impartiality, professionalism and perpetual existence. With this appointment, the execution of his estate would be safely carried out because it does not require the consent of beneficiaries and the appointment of guarantors. Since it is his intention to distribute his entire estate to his wife and children, then it is important for him to know the practicality of his distribution between the movable and immovable assets. For example, it is easier to distribute the movable assets such as money in the bank account and investment in shares equally. But when it involves properties such as a house, he has to seriously consider giving it to the wife first as she would have a basic shelter when he dies. Upon his demise, the Executors of his estate must apply for the Grant of Probate with the civil court and subsequently or simultaneously his family members apply to the Syariah court for the faraid certificate. These are the keys to unlocking and distributing Jalil’s estate. With unanimous consent from all beneficiaries, his entire estate can be distributed according to his wishes in his ‘Wasiat’. But in the event of a dispute, then the disputing family member will receive their entitlement according to the faraid provision and the balance will be distributed to the rest of the family members according to the ‘Wasiat’.

Peter Lee is an Associate Estate Planning Practitioner (Wills & Trust) with Rockwills International Group. He is also an Islamic Estate Planner providing Wills & Trust services for Muslims. He is based in Ipoh and can be reached at: 012-5078825/05-2554853 or excelsec@streamyx.com. Website: http://www.wills-trust.com.my.

Vote for Change

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By Peter Lee

I went to a hospital one early morning to take my medical test. While I was waiting for my turn, I heard a woman crying in one of the doctor’s rooms. Shortly after, a few people arrived and the woman dashed out from the room crying and informed those people that her husband had died. She then took them to another room and from outside I could see her deceased husband clad with T-shirt and shorts lying on the bed. Everyone present looked shocked and lost for words because at that point in time no words could comfort her. Then I overheard the woman saying that her husband apparently suffered a heart attack while returning home with her after their morning exercise. He died on the way to the hospital. If we imagine ourselves in her position at that moment, it is unlikely that we would be able to think straight and say we have planned well for our family. This is one of the incidents which I am sure all of us pray will not happen to our family members. But praying alone is not sufficient as we are not immortal.

The funny thing is people never learn to plan even if they could rewind their lives. Take for instance, a man phoned me one morning and asked whether I could come to the hospital where his father was admitted and wanted a will to be prepared urgently. I asked whether he was conscious and knows what he wants. The reply was “Yes”. So I went to the hospital and by the time I arrived an hour after the call, his father had just lapsed into a coma. The son then told me his father had recovered from a stroke and heart attack sometime ago and had been talking about doing a will but never did because he had fully recovered. Unfortunately, he just suffered another severe stroke and heart attack which left him paralysed. I told the son, with his condition now, I could not prepare his will.

Vote for change is a common phrase nowadays but have we thought of applying it to our family before applying it somewhere else. For example, with the two real life stories as a lesson, have we asked ourselves whether we have voted in our lifetime for our family first with a written “will and trust” so that we can change the destiny of their future, from uncertainty to certainty, when we pass away? If the answer is ‘no’, then it’s time to take action now. It is puzzling to observe people saying they are too busy to do their will but can drop everything and spend the whole day standing in the long queue at the Tax department on the last day of filing their tax returns. You don’t need to stand in a long queue when you prepare your will. All you need to do is appoint at least two Executors/Trustee or a corporate Executor/Trustee like Rockwills Trustee Bhd. Then appoint a guardian if your children are still minors. Subsequently, distribute your wealth according to your wishes and if minor children are involved then include a “Testamentary Trust” in the will so that the Executors/Trustee can have a clear idea how the estate money is going to be disbursed to the minor children. If you have a problem drafting it, just call the Estate Planner for help.

Peter Lee is an Associate Estate Planning Practitioner (Wills & Trust) with Rockwills International Group. He is also an Islamic Estate Planner providing Wills & Trust services for Muslims. He is based in Ipoh and can be reached at: 012-5078825/05-2554853 or excelsec@streamyx.com. Website: http://www.wills-trust.com.my.

I Will Always Love You

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Peter Lee

Tim and his wife Sandra in their mid-sixties retired from Government service 10 years ago. They have two sons and one daughter in their early thirties. The youngest son is mentally retarded and requires constant care. Due to his condition, he was placed in a special home for the disabled. When this home was destroyed by fire, Tim and Sandra took care of him. The eldest son is suffering from a mental disorder. He is capable of taking care of himself but his erratic behaviour is a problem for the family. He was working for some time but is now jobless. Due to his condition, he receives a monthly allowance from Socso but his finances are managed by his parents.  The daughter is normal with her own career. At times, Tim and Sandra have found it mentally and physically strenuous to take care of both their sons but as parents, they have accepted it as their life journey with a feeling that “I will always love you”. However, they realise that feelings alone will not help in the event of their demise unless they plan now to choose a Guardian and secure continuous funding for their sons. At the moment, their main source of income derives from their monthly pension and they do not have any insurance coverage.

Based on Tim and Sandra’s predicament, a will and trust is essential. Firstly, the appointment of Executor/Trustee is of utmost importance. They are strongly advised to appoint a Trustee Company like Rockwills Trustee Bhd. as the main Executor/Trustee because it has the expertise, impartiality, professionalism and most importantly perpetual existence. The appointment of a Guardian is also equally important whereby an immediate family member like the daughter can assume the role. However, Tim and Sandra must immediately identify a special home for their sons in the event when both of them are dead the guardian may not be able to cope as a caregiver at a later stage. Since the eldest son is receiving money from Socso, they have decided to give all their pension funds to the youngest son if both of them pass away. Therefore, they have to apply to the Public Service Department for approval because a government pension fund cannot be willed away. When approval is obtained, then the Public Service Department will pay directly to the disabled child’s account upon the demise of both parents. But in the youngest child’s case, a special account is required to be opened under another family member’s name who would most likely to be the guardian. Tim and Sandra decided to give to each other their entire estate first and if both die, then everything will be distributed equally among their three children. They must draw up a “Testamentary Trust” in their will for each of their sons’ ⅓ portion and specify an amount for their monthly living and medical expenses. The Trust would end either upon the exhaustion of the fund or if the sons die. It will be easier to manage their estate if everything, except for the house they are staying in, is converted into cash. While I am writing this story I can’t help but wonder how many out there in the same position would be as lucky to receive funding from Socso and a Pension Fund? As such, wouldn’t it be safer to have extra funding in the form of Insurance for your family and safeguard it with a “Living Trust” if you are in this position?

Peter Lee is an Associate Estate Planning Practitioner (Wills & Trust) with Rockwills International Group. He is also an Islamic Estate Planner providing Wills & Trust services for Muslims. He is based in Ipoh and can be reached at: 012-5078825/05-2554853 or excelsec@streamyx.com. Website: http://www.wills-trust.com.my.